I need investment advice (stock market)

[BlackVelvet]

I am making significant loss on investment (almost 25%).

Basically I need someone to tap my hand and tell me I am doing the right thing by holding onto the shares. Who knows enough to make me believe in their hand tapping and positive words of encouragement?

[GAMES]

How much are u looking to invest? If u have significant amount of money, invest in tech companies, like start ups and stuff.

In couple of yrs, when the stock goes up, u can cash out.

P.S, why not just invest in Somalia?

For $70k u can buy a premium land, or open a dukaan or an Internet Cafe or something.

[waraabe251]

Sell it, if you are making a massive loss like that it is unlikely you will gain

[Shirib]

Well idk what stocks you've bought so I can't get into specifics. But most people are idiots, and buy a stock when it's high, freak out when it falls and then sell it and lose money. Then they rinse and repeat and keep losing money that way.

If your stock is a steady stock through out the years and it just lost 25% it's a perfect time to buy more of it and cash in when it goes back up.

Now that being said, stop buying individual stocks and just invest in mutual funds, or index traded funds.

[Lamagoodle]

Dear Jasmine, the stock market is volatile. If you are making loses, sell the shares. In many countries, you can write off the losses against potential gains.

How large is your portfolio? Is it a one-time investment? Monthly? Time horizon? Are you a risk taker? Your risk aversion level?

If you have a high-risk aversion level, I would recommend mutual funds (70-80 stocks in established firms) and the rest in interest bearing instruments/ government bonds as a cover.

You can also buy shares but make sure to hedge them just in case.

You can daytrade but you should have a buffer ( if you have 10 000 pounds for instance, invest 8 000 in "low" risk shares/bonds and you can use the rest to day trade.

[BlackVelvet]

It is growing as a company which is something I am finding frustrating. Yes it's a UK company with significant exchange risk but its ROCE is still pretty soilid. I've been reading the forums and there is no reason for it to be doing so shyte. It outperformed the sector in the last quarter and I am certain they will do it again. All the news about it is positive.

I knew it was going to be very reactive, that volatility index thing but still, is this normal? In hindsight I did buy at a high but still....

It has a buy rating and a target price which will give me about 30% return. It has only been 4 months. I just need to be more gutsy and trust the numbers right?

start ups

Too risky

P.S, why not just invest in Somalia?

That is the idea, eventually when there is a bit more stability and I have a lot more capital

[SultanOrder]

What's the name of the company, I want to invest.

[Marques]

Hold onto those shares for now....optimize your portfolio and invest in shares that negatively correlate i.e. Shares that go up when your current shares in whatever market you're involved in goes down. You'll always get a minimum expected return Portfolio theory

Joke, where's the fun if you don't take risks in the stock markets..Keep them anyway and wait for a boom. We are recovering from the recession so things could be looking up...

[LobsterUnit]

Jasmine give you money to charity.i can recommend a good one.

[BlackVelvet]

Shirib, Jaalle

I know individual stocks are not the best idea but I wanted to make the investment as halal as possible and with mutual funds and index traded funds.... Government bonds is also outright interest which makes me uncomfortable.


At this rate I am just waiting to breakeven and get out, call it an experience. But then I know I will get greedy when I see the price rise

[Lamagoodle]

Jasmine, as an old insider, I can tell you these:
a) the notion that you can have a stock market investment without an element of interest is preposterous.
b) There is no Halaal investment unless you want to buy livestock in Africa. Halaal investment in the context of the global economy is like "St Clause". It does not exist and is used an opium to sell.

The stock market functions in a global web where interest rates is the norm.

P.s. people stick to losing stocks in the hope that they will break even. That is not a good strategy if it is a small firm.

[BlackVelvet]

b) There is no Halaal investment unless you want to buy livestock in Africa

I can just hear the disdain with which that was uttered


Okay I know it's a strange way of looking at it but it's the "I will eat meat but I won't kill an animal" philosophy. As long as xaranta sanka iiga jirin I can excuse it in my heart. E.g. I don't mind putting money in an inflation beating account where I am earning interest (it is how the system works) but to outright earn interest as income....I can't be at peace with that and I will probably create a self-fulfilling prophecy and make all my money barako-la'aan.


There has to be an in-between

P.s. people stick to losing stocks in the hope that they will break even. That is not a good strategy if it is a small firm.

Don't say that. It's at an all year low today

[Lamagoodle]

I know what I am talking about adeer. Abandon ship before it is too late; it is one thing if it is an old stock but if it is a stock that has recently been introduced (new firms) abandon it.

As regards the Halaal issue; there is nothing called "Halaal" investment in the global financial system. So called islamic banks borrow money on the international financial market; their stocks are traded globally. They cannot FUNCTION in Isolation!!! Don't buy crap from people who do not know how the financial system works.

All my gains from this year have been wiped out following three days of dives. But, I invest prudently and come a few weeks, I will make gains. I prefer mutual funds/indexed.

[BlackVelvet]

Nah it was not an IPO, I am not that brave yet.


About the Halal thing adeer are you saying that you would be comfortable investing in a mutual fund that has casino shares or shares in an alcoholic beverages company? That's what I mean about there being a line. And with the interest issue, the only time I would go out of my way to get into that is if I was taking a loan or using the interest to pay a loan or beat inflation, I just can't get myself to go out of my way to make interest. It feels wrong.

[Shirib]

Jasmine,

Hold on to it, forget you even have it, and when the company starts doing great again, or you really need the money, that's when you sell.

My investments made a killing last year, and this year I'm at a 2% loss. Don't get too up on your highs and too low when it's down. Pretty much stay emotionless. But then again, my investments are long term, so I'm not gonna get worried about it, check a few times a year.

Were you trying to make quick cash or is this something more of a long term investment